Comments from Philly Fed President Harker:
- Fed funds will continue as primary tool
- Slow and steady on balance sheet is safest option
- We only have estimates of demand for reserves
Separately, more from Bullard:
- Balance sheet may not be as important today as in heyday of QE
- Now that rates are higher, changes to balance sheet only have a minor effect
- Changes to balance sheet only have a big effect when rates near zero
This is the heaviest day of Fed talk in awhile. And it's remarkable that they've all said absolutely nothing to move markets.